Problem 5 5A Piper Specialty Store Ltd completed the following merchandising transactions in the month of May 2018 At the beginning of May, Piper Specialty Stores ledger showed Cash $7,400 Accounts Receivable $1,600 Inventory $3,100 Common Shares $8,700 and Retained Earnings $3,400 Piper Specialty Store uses a perpetual inventory system May 1 Purchased merchandise on account from Depot Wholesale Supply Ltd for $6,200, terms 1 10, n 30, FOB shipping point 3 Freight charges of $140 were paid by the appropriate party on the merchandise purchased on May 1 4 Sold merchandise on account to Yip Company for $3,100, terms 2 10, n 30, FOB destination The cost of the merchandise was $2,100 7 Freight charges of $70 were paid by the appropriate party on the May 4 sale 8 Received a $200 credit from Depot Wholesale Supply when merchandise was returned 9 Paid Depot Wholesale Supply in full 11 Purchased supplies for $400 cash 14 Received payment in full from Yip Company for merchandise sold on account on May 4 15 Collected $1,100 of the accounts receivable outstanding at the beginning of the month All accounts were originally sold on terms of n 30, with no sales discounts 18 Purchased merchandise from Harlow Distributors Inc for $2,000, terms n 30, FOB destination 21 Freight of $40 was paid by the appropriate party on the May 18 purchase of merchandise 22 Sold merchandise to various customers for $7,200 cash The cost of the merchandise was $3,900 29 Paid a $100 cash refund to customers for returned merchandise The cost of the returned merchandise was $60 It was restored to inventory 31 A physical inventory count was taken and determined that there was $4,800 of inventory on hand Prepare any adjustment required Record the May transactions Set up T accounts, enter the opening balances, and post the transactions Prepare a partial multiple step income statement for the month ended May 31, through to gross profit prepare the current assets section of the statement of financial position as at May 31

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Problem 5-5A Piper Specialty Store Ltd. completed the following merchandising transactions in the month of May 2018. At the beginning of May, Piper Specialty Stores

Problem 5-5A

Piper Specialty Store Ltd. completed the following merchandising transactions in the month of May 2018. At the beginning of May, Piper Specialty Stores ledger showed Cash $7,400; Accounts Receivable $1,600; Inventory $3,100; Common Shares $8,700; and Retained Earnings $3,400. Piper Specialty Store uses a perpetual inventory system.

May	1	Purchased merchandise on account from Depot Wholesale Supply Ltd. for $6,200, terms 1/10, n/30, FOB shipping point.
	3	Freight charges of $140 were paid by the appropriate party on the merchandise purchased on May 1.
	4	Sold merchandise on account to Yip Company for $3,100, terms 2/10, n/30, FOB destination. The cost of the merchandise was $2,100.
	7	Freight charges of $70 were paid by the appropriate party on the May 4 sale.
	8	Received a $200 credit from Depot Wholesale Supply when merchandise was returned.
	9	Paid Depot Wholesale Supply in full.
	11	Purchased supplies for $400 cash.
	14	Received payment in full from Yip Company for merchandise sold on account on May 4.
	15	Collected $1,100 of the accounts receivable outstanding at the beginning of the month. All accounts were originally sold on terms of n/30, with no sales discounts.
	18	Purchased merchandise from Harlow Distributors Inc. for $2,000, terms n/30, FOB destination.
	21	Freight of $40 was paid by the appropriate party on the May 18 purchase of merchandise.
	22	Sold merchandise to various customers for $7,200 cash. The cost of the merchandise was $3,900.
	29	Paid a $100 cash refund to customers for returned merchandise. The cost of the returned merchandise was $60. It was restored to inventory.
	31	A physical inventory count was taken and determined that there was $4,800 of inventory on hand. Prepare any adjustment required.